IMPORTANT POINTS:
- Dogecoin experiences an increase in transactions and daily volume.
- The introduction of DRC20 tokens expands Dogecoin’s functionality.
- An increase in the Dogecoin hash rate indicates a stronger network.
In a recent video update, the popular cryptocurrency market talk show “Altcoin Daily” shared with its more than 1.31 million subscribers that the price of meme-based cryptocurrency Dogecoin (DOGE) is about to “explode.” These are the reasons they mentioned:
1. Increase in transactions: One of the key indicators of Dogecoin’s growth potential is the significant increase in its daily transaction volume. The video highlights that Dogecoin has consistently confirmed over a million daily transactions, surpassing Bitcoin and Ethereum. On May 27, 2023, Dogecoin reached the milestone of processing over 2 million transactions in a single day. This increase in transactions indicates a growing use of Dogecoin for transfers, which could boost its price.
2. Introduction of DRC20 tokens: The video attributes the increase in Dogecoin transactions to the introduction of DRC20 tokens, similar to the BRC20 tokens created on the Bitcoin blockchain. This development has expanded the functionality of the Dogecoin network, allowing the creation of custom tokens. This could attract more users and developers to the platform, increasing demand for Dogecoin and potentially boosting its price.
3. Increase in hash rate: Another positive indicator for Dogecoin is the notable increase in its hash rate in recent weeks. The hash rate measures the computational power used to secure the network. An increase in the hash rate indicates a strong and healthy network, suggesting that more miners are supporting Dogecoin. This increased network security could make Dogecoin more attractive to investors, which could boost its price.
4. Bollinger Bands Indicator: The video also mentions a technical analysis indicator called Bollinger Bands Bandwidth, which suggests that the Dogecoin price could move sharply in either direction. Given the other positive indicators, the video indicates that a move to the upside is more likely. If this prediction comes to pass, it could result in a significant increase in the Dogecoin price.
5. Historical Market Trends: The video mentions that historically, an increase in the price of Dogecoin often precedes a bull market in the broader cryptocurrency cycle. If this pattern holds, an increase in the Dogecoin price could signal a rally in the general market, which could lead to further increases in the Dogecoin price.
